As the aviation industry buckled under the nose diving decline in demand – it’s now at levels equal to about 1955, governments stepped up to support pay and retain jobs.
It’s not going to be enough, because demand simply isn’t coming back as fast as it vanished. Most projections are putting it at 2022-23 before it reaches 2019 levels again.
As a result airlines have started announcing permanent job losses.
British Airways are looking at around 20%, 12,000 people.
Ryan Air announced 3,000.
Lufthansa yesterday openly discussed bankruptcy and across all of its airlines expects some 30,000 jobs may go as a minimum.
US airlines are already keeping as many as 90% of their staff on reduced and even unpaid leave. American said if there isn’t significant demand rising by October – Thanksgiving , then Christmas, permanent massive job cuts are inevitable.
United is planning job cuts and for the manufacturing side, Boeing, which posted a massive loss this week, is planning to shed 16,000 jobs.
Airbus is using furlough schemes for now but it will almost certainly have to make permanent job cuts. Worker protections in France and Germany are extensive and expensive, so numbers and time frames are complex. British jobs may take more of the cuts as they’re far easier to implement.
And the picture is the same almost everywhere. Airlines are closing down and airports with no customers – especially small regionals are in dire straights. Even Heathrow announced a huge loss and delays to the Runway Three of another 2 years.
And on top of all of that the savage cut in airline demand for new aircraft has come home to hit Rolls Royce – they announced 8,000 jobs would have to go yesterday. Their pay as you go system for engine leasing has seen a 30% cut in monthly income alone – when aircraft don’t fly they don’t have to pay. Not something anyone ever really considered when selling the concept.